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Dad gives Son a 5% capital and prots interest in the Family Partnership. Dad holdsa 55% interest, and Fitz, an unrelated individual, holdsa40% interest. Dad
Dad gives Son a 5% capital and prots interest in the Family Partnership. Dad holdsa 55% interest, and Fitz, an unrelated individual, holdsa40% interest. Dad and Fitz work in the partnership, but Son does not. Dad and Fitz receive reasonable compensation for their work. The partnership earns $400,000 ordinary income, and the partners agree to divide this amount based on their relative ownership interests. Requirement What income must Father, Son, and Fitz report if Family Partnership is a manufacturing rm with substantial inventories? [Assume Son passestne test for ownership of partnership interest. Complete all input fields. Enter a "0" for any zero balances] income Reported by Each individual! Father Son Fitz Total distributive income
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